Octopus Investments Reading time: 3 mins

Octopus Cash rallies the challengers to take on the high-street

16 May 2018

Octopus Investments, part of the Octopus Group, has today announced a string of new updates to Octopus Cash – its savings service built to help individuals, and more recently businesses, charities and trusts, to find a better return on their cash savings without the need for regular switching.

New banking partners

Metro Bank, Aldermore and B&C have joined the list of challenger banks now working with Octopus Cash to offer customers an interest rate that’s over double the ‘high street’* average.

Increasing the number of banking partners means clients can enjoy even greater coverage from the Financial Services Compensation Scheme (FSCS), without having to open multiple savings accounts. Customers can now deposit up to £425,000 across five banks – including current partners OakNorth and Cambridge & Counties Bank.

Lionel Ross, Corporate Savings Manager at Aldermore added:

“We view Octopus as a long-term, strategic partner who shares our entrepreneurial values and aspirations for challenging the status quo.  At Aldermore, we have a proven track record for supporting savers and we look forward to working with Octopus to help savers improve their returns in a simple and convenient way.”

Claire Bridel, Chief Executive Officer of B&C said:

“Octopus Cash has successfully developed a way for their customers to secure attractive rates and access a growing range of savings products without the operational hassle. B&C shares Octopus’ vision of open banking and customer service. We are therefore extremely pleased to become a partner bank and make our products available to Octopus’ clients.”

Octopus Cash now open to businesses, charities and trusts

Businesses – along with charities and trusts – can now also open an account with Octopus Cash and earn consistently competitive rates of up to 1.65% and 1.45% respectively.

Sam Handfield-Jones of Octopus Cash said:

“UK businesses have hundreds of billions locked away in low interest, fixed-term deposits – that’s a lot of lazy money that should be working harder. With inflation remaining high, and meaningful interest rate rises still on the distant horizon, finding the best savings rate is crucial.

“Octopus Cash aims to combat stagnant cash by doing the legwork for our customers. Through one account comes a host of banking partners, which means we can eliminate the hassle and paperwork that comes with opening and maintaining multiple bank accounts.”

New 35-day notice option for advised clients

Another feature that has been recently introduced, initially for clients of financial advisers, is a 35-day notice option, allowing customers to access leading rates of up to 0.76% whilst still maintaining ready access to their cash. While the one-year fixed-term account locks in an interest rate for 12 months, the 35-day product calculates interest daily, and credits accounts at the end of the month. Should interest rates fall, Octopus Cash allows customers two months’ notice, allowing them to plan for any necessary changes – whereas should they rise, the increase will be passed on immediately.

The service at a glance

To make sure the full amount deposited by savers is FSCS protected, Octopus Cash will allocate to the banks as follows:

  • Less than £85,000? Octopus Cash will deposit all of the cash with the challenger bank paying the best rate
  • More than £85,000? Cash will be deposited in chunks of £85,000, from the highest to the lowest rate on offer
  • More than £425,000? Clients can save more if they choose – but the excess won’t be covered by the FSCS

Monica Curtis, an independent financial adviser at MC Financial Solutions, said: “We have been working with Octopus Cash for almost 12 months now, and in that time, we have been impressed by both the team and the balance that the product offers to our customers. We work with clients who have a variety of needs, and the flexibility on offer from Cash, especially for trusts and corporate money, is well balanced to meet the realities of those needs. The product has a definite place on the market, and we look forward to seeing how it continues to develop.” 

Saving with Octopus Cash is free to clients, other than any fees they might agree to pay their adviser.


Notes to editors:

*‘High street’ defined as Santander; Barclays; HSBC (including First Direct) and RBS. 0.64 per cent is the averaged out one-year savings rate paid by these banks in April 2018

Issued by Octopus Investments which is authorised and regulated by the Financial Conduct Authority. Registered office is 33 Holborn, London EC1N 2HT. Registered in England and Wales No. 03942880

Octopus Cash is provided by Octopus Co-Lend Limited, which is authorised and regulated by the Financial Conduct Authority. Registered office is 33 Holborn, London EC1N 2HT. Octopus Cash is managed on a day to day basis by Octopus Institutional Deposits Limited. Registered office: 33 Holborn, London, EC1N 2HT. Registered in England and Wales No. 10163532. Issued May 2018.